Post Utme Lead City University 2019 Commerce Question 37

Practice objective / multiple choice question 37 from the 2019 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2019 Commerce Objective / Multiple Choice
Question 37 POST_UTME_LEAD_CITY_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering a new production process that will reduce its costs by 10%. However, the new process will also increase its variable costs by 15%. What will be the effect on the firm's profit?

Answer Options

Correct Answer A. Profit will increase by 5%
B. Profit will decrease by 5%
C. Profit will remain unchanged
D. Profit will increase by 10%
Correct Answer
A
Correct Option:
Profit will increase by 5%

About This Question

This is Post Utme Lead City University 2019 Commerce Question 37. It is one of the objective questions from the 2019 Post Utme Lead City University Commerce examination.

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